Stargazer_fx

DOUBLE BOTTOM PATTERN, How to trade it...

Education
OANDA:XAUUSD   Gold Spot / U.S. Dollar
DOUBLE BOTTOM

It is a reversal pattern and it forms in a Downtrend
It consists of a lower low followed by a point that is unable to make a lower low, after that price will start
making higher lows instead of lower lows.
This is a sign that the down move is over and price has the potential to reverse to the upside.

HOW TO TRADE IT:
This pattern usually occurs after price form a descending channel, we wait for a breakout of the descending trendline as well as the resistance level that will become future support and then we wait for a bullish corrective structure such as ''Flag/Wedge/Triangle'' to buy on a breakout.


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